A federal jury in California on Monday (May 18) ruled against billionaire entrepreneur Elon Musk in his lawsuit against OpenAI, finding that the artificial intelligence company was not liable for allegedly abandoning its original mission to benefit humanity.
The unanimous verdict was delivered in federal court in Oakland, California, after jurors deliberated for less than two hours.
Musk had accused OpenAI and its leadership of transforming the organization from a nonprofit focused on safe artificial intelligence into a profit-driven company backed by major investors, including Microsoft.
Court says Musk waited too long to sue
The jury concluded that Musk brought the lawsuit too late under applicable legal deadlines.
Following the ruling, U.S. District Judge Yvonne Gonzalez Rogers indicated that overturning the verdict on appeal could be difficult.
“There’s a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” the judge said in court.
Musk’s attorney, Steven Molo, said the billionaire reserved the right to appeal the decision.
What Musk alleged against OpenAI
In the lawsuit filed in 2024, Musk accused OpenAI CEO Sam Altman and company president Greg Brockman of misleading him into donating roughly $38 million to support OpenAI’s nonprofit mission.
Musk argued that OpenAI later shifted toward a commercial business structure without honoring its original commitments.
He described the company’s actions as:
“Stealing a charity.”
The lawsuit also alleged that OpenAI improperly prioritized profits and investor interests over artificial intelligence safety and public benefit.
OpenAI defended business shift
OpenAI rejected Musk’s claims during the 11-day trial, arguing that the company evolved in response to the enormous costs associated with developing advanced AI systems.
Lawyers for OpenAI argued Musk himself had financial motivations and delayed filing the lawsuit for years after leaving OpenAI’s board in 2018.
“Mr. Musk may have the Midas touch in some areas, but not in AI,” OpenAI attorney William Savitt told jurors during closing arguments.
OpenAI’s legal team also argued the company needed outside investment to remain competitive in the rapidly expanding artificial intelligence industry.
Sam Altman’s credibility becomes central issue
The trial frequently focused on the credibility of both Musk and Altman.
Musk’s lawyer repeatedly challenged Altman’s honesty during closing arguments.
“Sam Altman’s credibility is directly at issue,” attorney Steven Molo told jurors.
“If you don’t believe him, they cannot win,” he added.
Witnesses during the trial reportedly questioned Altman’s candor, while Musk himself acknowledged during testimony that he was not “completely trustworthy” in all circumstances.
OpenAI’s rise and Microsoft partnership examined
OpenAI was founded in 2015 by Altman, Musk and several others as a nonprofit research organization focused on developing safe artificial intelligence.
Musk left the company’s board in 2018.
A year later, OpenAI created a for-profit subsidiary that later secured massive investments from Microsoft and other backers.
During the trial, testimony revealed Microsoft has invested more than $100 billion into its partnership with OpenAI.
The company is reportedly preparing for a future public offering that could value OpenAI at nearly $1 trillion.
AI industry rivalry intensifies
The case highlighted growing tensions within the artificial intelligence industry as companies compete to dominate rapidly evolving AI technology.
OpenAI currently competes with firms including Anthropic and xAI, Musk’s own artificial intelligence company.
Musk’s xAI is now part of SpaceX, which is reportedly preparing for an IPO that could rival or exceed OpenAI’s future market value.
The lawsuit also revived broader public concerns about artificial intelligence, including fears over job displacement, misinformation, deepfakes and AI safety.
